𝘞𝘩𝘦𝘯 𝘢 𝘴𝘵𝘳𝘦𝘯𝘨𝘵𝘩 𝘤𝘢𝘯 𝘣𝘦 𝘢𝘯 𝘰𝘷𝘦𝘳𝘭𝘰𝘰𝘬𝘦𝘥 𝘳𝘪𝘴𝘬.

You can have one or a few great suppliers.

Great pricing. Great service. Relationships that have lasted 15 years

That’s an asset.

But being dependent on that supplier is a risk to your company’s valuation.

Start by looking at your company through the lens of a potential buyer. They will ask,

What happens if one of your key suppliers raises prices?

Can’t keep up with your growth?

Gets acquired?

Or simply can’t supply you anymore?

If you don’t have alternatives, the buyer isn’t just buying your revenue and profits.

They’re buying that dependency — and the risk that comes with it.

I saw this firsthand with a client, athletic insole manufacturer VKTRY Gear.

As part of the Value Builder process, we identified that too much of VKTRY’s supply chain was concentrated in China.

By diversifying that geographic and geopolitical risk, they built a more resilient, less risky and ultimately more valuable company.

And it helped make VKTRY more buyable, culminating in its acquisition by Dr. Scholl’s this past Spring.

There’s an important distinction:

A great supplier relationship is an asset.
Being dependent on one or a few suppliers is a risk.

If you want to discover the value red flags in your business — and learn how to mitigate them — join me in my 𝗩𝗮𝗹𝘂𝗲 𝗕𝘂𝗶𝗹𝗱𝗲𝗿 𝗙𝗮𝘀𝘁 𝗧𝗿𝗮𝗰𝗸 𝗽𝗲𝗲𝗿 𝗴𝗿𝗼𝘂𝗽.

Comment 𝗩𝗔𝗟𝗨𝗘 below and I’ll send you the details.

And follow me here for more ways to improve your business.